Oh no, here's a new concern: Forget about this Internet mania making fundamentalists obsolete -- I'm afraid GBS will become obsolete! Don't think so? Well, look at it this way: the market is becoming ALL INTERNET, ALL THE TIME. And that's fine except for one thing. These stocks don't rest. They don't stop. They barely even pause. And I need at least some sideways movement in order for me to get a breakout and entry. But so far, nothing. Which means I can't play. Which means anyone already long the Net will crush me.
these stocks keep going up.
On the other hand, maybe I'll catch them on the way down. ...
Okay, next topic: charts. I wanted to tackle this new
technology again, and use those pop-up charts. The larger ones are easier for me to write on, and I know they are a lot clearer for you to see. And since I know many of you print them off, I made them all black and white. Remember, Ctrl + P should get them to print.
The only other change is that my entire response to your chart question will be on the chart. So, if you print the chart off, everything will be in one place. We'll see how this works out.
A Day in the Life
Gary, I enjoy your writing in
immensely and have incorporated much of your GBS Classic system into my own trading. Like you, I have most of my orders placed before or during the first hour of the market trading day. If I read your system correctly, there's not much to do after your orders have filled and your limit and stop orders have been placed. Do you do any significant order placing after the open, or market analysis during the trading day? If not, I'm curious as to how you spend the trading day, other than writing for
? Keep up the great writing, and hope the move to D.C. goes well! Stanley Hwang
Thank you, Stanley. By the time you read this, I'll be within 14 days of a D.C. touchdown. So far, so good.
On what my day is like, you are correct: after my orders are placed and filled, there really isn't much to do. As for intraday orders, that's verboten in my system. Live by the EOD charts, die by the EOD charts.
That said, here's a rough approximation of how my day goes:
7:45 to 8 a.m.: Review TC2000 scan results and select trading candidates for that day.
8 to 8:30 a.m.: Discuss candidates with
(my trading partner), and decide finalists.
8:30 a.m.: Submit orders.
8:31 to 9:30 a.m.: Read
, answer email.
9:30 to 10 a.m.: Get fills, enter stop and limit orders.
10 a.m. to Noon: Start to write; goof off, lunch.
Noon to 1 p.m.: Work out.
1 to 3 p.m.: Serious writing and nap.
3 to 7 p.m.: Shuttle kids to swim practice; help with homework; think about fixing dinner.
7 p.m.: Default to getting take-out for dinner.
7:30 p.m.: Download TC2000 data.
8 p.m.: Glance briefly at charts to get a feel for market, but realize I'm too tired to concentrate (stressful day!) and go watch TV!
Yeah, I know. Not much to it. But in all seriousness, a few points. It took me a long, long time to get to where I am now. There were literally months and years where I would work for hours each day on figuring out how to trade. I suppose it's a bit like watching a surgeon: the operation may be quick, but it's all those years of schooling and practice you forget about.
The other thing to remember is that I still do dabble and think about new approaches to my trading. Thankfully, though, I don't do that too often!
Going One for Four
Dear Mr. Smith: I am new to your column and technicals interest me very much. At your convenience, please comment on: Data Broadcasting (DBCC) , RealNetworks (RNWK) - Get Report, Miravant Medical Technologies (MRVT) and King Pharmaceuticals (KING) . These interest me very much and your expert opinion will be greatly appreciated. Jay Sacco.
Jay, per my policy of one chart to a customer, let me tackle RNWK, as someone else also wanted some guidance on this stock.
here for the RNWK chart and answer.
A Post-Holiday Short
Gary, Take a look at the Abercrombie & Fitch (ANF) - Get Report chart. Some recent brokerage recommendations have driven it up, as you can see. Considering the seasonality of this sector, does this look like a good short to you? Mark Zabell
here for the ANF chart and my answer.
A Look at Dell
here for the DELL chart and my answer.
Dear Gary, I've been trading for about three months on a hope and a whisper. Started studying charting techniques, and am impressed that there is something of value in it. I have been a trader in Egghead (EGGS) for a while, and I know how volatile it can be. What I have learned in charting however indicated that in the last few days before the end of the year it was ready to really move. I could not have been more wrong. Does the chart show anything that I missed? I enjoy your column very much. Thanks. Al Graupman
here for the EGGS chart and my answer.
Gary, Please look at Informix (IFMX) . Looks like something going on here! Ron Dunn
here for the IFMX chart and my answer.
By TA Alone
Gary, I enjoy your column very much. Being new to TA I've read Steve Nison and now believe that charts should be read before any final decisions are made. I'm not ready to do it by TA alone, but I sure can see why so many traders live by it. Please look at candlesticks for Tech Data (TECD) - Get Report and give an opinion on the low volume rally after the high volume sell off. Jan. 4 may have the answer, but your thoughts would be appreciated. Bernie Wojtasik
here for the TECD chart and my answer.
The Long Haul
Hi Gary, Kudos to your column. I really enjoy your approach to charting, and I'm slowly learning! Thanks for all your insight. Can you take a look at the Western Digital (WDC) - Get Report chart for me? I have built up a substantial long position (at least for me, that is) at 13 but I keep hoping that it will climb into the low 20s. If I'm right in reading TC2000, the chart shows continuing positive accumulation, so I'm assuming that the stock is going in the right direction in the long run. Would appreciate your comments if you have the time. Thanks again for a learning experience. Definitely enjoy your weekly analysis. Don Brown
here for the WDC chart and my answer.
Gary B. Smith is a freelance writer who trades for his own account from his Connecticut home using technical analysis. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. This column, Technician's Take, appears every Monday. Smith also writes Charted Territory, which appears every Wednesday, and TSC Technical Forum, which runs Saturdays and Sundays.